Warren Calls For More Financial Regulation, She Is Wrong
Article from Reason by Veronique de Rugy.
In September, we learned that Equifax had suffered a massive data breach that exposed the personal information—including names, addresses, birthdates and Social Security numbers—of 145 million Americans. It was the latest in a string of cybersecurity breaches in recent years. The frequency of such attacks — with other prominent examples including breaches of systems belonging to Target, eBay, Yahoo and Home Depot—demonstrates the complexity of securing sensitive information in the internet age.
If there’s one thing that all these breaches have taught us, it’s that cybersecurity is hard. There’s no easy legislative fix, and knee-jerk calls for new regulations on each industry that suffers from a breach offer no substitute for improving cybersecurity.
Nevertheless, a mere week after the Equifax breach, Sen. Elizabeth Warren, (D-Mass.), had the issue all sorted out. She introduced her legislative remedy, the Freedom from Equifax Exploitation, or FREE, Act, claiming that it “is a first step toward reforming the broken credit reporting industry.”
Instead, Warren focuses on promoting credit freezes by forcing credit reporting agencies to offer the service free of charge. That is troubling because it would be far too easy for consumers to get in the habit of using government to force businesses to provide useful services free. In addition, there is danger in the over-promotion of credit freezes, which, though a useful tool for consumers, come with the potential for economic downsides.
Read the entire article at Reason.